Westag & Getalit : Group sales revenues and earnings slightly below prior year in Q1 2017

Westag & Getalit AG generated sales revenues of EUR 59.7 million in the first quarter of 2017. The slight 1.0% decline from the prior year period's EUR 60.3 million is due to moderate demand at the beginning of the year. Exports showed a positive trend during the first three months, with revenues in the Group's foreign markets up by 5.6% to € 13.2 million (previous year: € 12.5 million). Consequently, the export share climbed from 20.7% to 22.1%.

Consolidated earnings before taxes amounted to € 2.3 million, which was slightly below the previous year's € 2.4 million. As a result, net profit for the period declined to € 1.5 million (previous year: € 1.6 million). Net profit per share amounted to € 0.26 for the ordinary shares (previous year: € 0.27) and to € 0.32 for the preference shares (previous year: € 0.32).

Outlook

In spite of a moderate start to the year, the outlook for the coming months remains positive. Based on the forecasts for the German construction sector, which mainly influences the business of the Doors/Frames Division, the Management Board continues to expect a positive market environment for 2017. The positive revenue expectations are also based on the ongoing expansion of the distribution activities in the Surfaces/Elements Division. Developments in the increasingly important export markets will again be subject to several uncertainties in 2017. In particular, the economic situation in European neighbouring countries will be influenced by the continued low-interest policy and the consequences of the Brexit. Against this background, it is difficult to issue an exact forecast for business outside Germany. On balance, however, management is optimistic that the company will be able to further expand its export activities assuming a benign economic environment.

The past year was essentially influenced by the good economic environment and the improved cost structures. Based on the assumption that the economic environment remains favourable, the Management Board's objective is to achieve a slight increase in sales revenues in both operating divisions in the full fiscal year in spite of the subdued start into 2017. Depending on the development of the main expense items, e.g. raw materials, the company expects earnings to reach the previous year's level in the fiscal year 2017.

Given that a Russian distribution company was established at the end of 2016, Westag & Getalit AG publishes its figures on a consolidated basis. The prior year figures have been adjusted accordingly.